Automotive News - April 14, 2008 - (Page 8)

8 • APRIL 14, 2008 advertising Some stores may not sell Chrysler hybrids Dodge deluge Dealers are preparing for a flurry of new products. This month: Journey crossover May: Challenger SRT8 Fall: Ram 1500, Challenger (3 versions), Durango hybrid The Dodge Challenger SRT8 goes on sale in May. ume vehicle,” said Michael Accavitti, director of Dodge brand and SRT marketing and communications. “We’ll only sell them through dealers who want to sell them.” The company and dealer council are working on a retail plan, said Accavitti, speaking at the launch of the 2008 Bradford Wernle bwernle@crain.com OUR DEALERS ARE GROWING Spending for AND SO CAN YOU! training, tools might be optional LOS ANGELES — Chrysler LLC may sell its hybrid SUVs only through select dealerships. Although a company spokesman said no decision has been made, one high-level executive said the choice of whether to sell hybrids would be left to dealers. “The hybrid will be a limited-vol- “With Zimmerman as a partner we have Lexus adds a personal touch grown to be the to pamper owners, prospects # 1 GM Dealer Lap of luxury in Albany, NY.“ Mark Rechtin mrechtin@crain.com Kara DePaula DePaula Chevrolet Dodge Challenger SRT8 muscle car in suburban Los Angeles. Dealers must buy special tools and invest in employee training in order to sell the hybrids. see DODGE, Page 42 RESULTS! • KEYES AUTO GROUP • IRA MOTOR GROUP • TOM WOOD AUTOMOTIVE • CHECKERED FLAG • AUTONATION • DIEHL MOTOR COMPANY • CORAL SPRINGS AUTOMALL • RUSTY ECK FORD • AUTOLAND • HENDRICK CARY AUTOMALL • PATRICK AUTO GROUP • HUBLER AUTOMOTIVE • PLEASANTON AUTOMALL • DEPAULA CHEVROLET • WALLACE NISSAN OF KINGSPORT • SUPERIOR CHEVROLET Dealers Prove Our Advertising Gets NEW YORK — Lexus is strengthening its grassroots marketing to deepen its roots with existing customers. “Given the market we’re in, customer loyalty is more important than ever,” said Brian Bolain, Lexus’ national manager of interactive and automotive event marketing. “When you buy a Lexus, you are part of a family, which includes opportunities for owners.” There are 2 million Lexus owners in America, a growing group but nowhere near as big as Mercedes’ 3.4 million. That means Lexus must work hard to retain its smaller customer base. Bolain declined to specify his grass-roots marketing budget. The grass-roots marketing tactics Lexus and some dealers are using include Eco-friendly hotel suites Vouchers and Lexus cars at hotels Food events, wine tasting and golf outings Private movie screenings Free stadium parking ‘Hybrid-living suites’ Lexus’ latest gambit is with the Fairmont Hotels chain. The properties in San Francisco and Washington will have “hybrid-living suites” with furniture, bedding and towels made from organic, sustainable and renewable resources. The minibar is stocked with “biodynamic” wines and organic farmstead cheeses. During a stay, a guest also will get to drive a Lexus LS 600h hybrid sedan. As befits such upscale niceties, the suite costs $869 a night. Bolain expects the hybrid-living suite concept to be expanded to other Fairmont properties. For a more routine hotel stay, Lexus owners at 13 other boutique hotels receive $100 vouchers for dining and spa services. Those hotels also will offer no-charge access to Lexus vehicles to test drive. “We don’t want to deviate too far from cars, but in the middle of the ownership cycle, we can’t just abandon our customers and make the dealer do all the work,” Bolain said. Lexus also is launching a concierge service that informs owners of local food, wine and golf events sponsored by Lexus. Then there are the little things that seem big. For instance, Lexus has made a deal with National CineMedia to offer private screenings of upcoming blockbuster movies. This summer, Lexus owners in select cities can see an advance showing of Indiana Jones — complete with dinner and popcorn — at no charge. “It’s just our way of saying thanks for being a customer,” Bolain said. On the interactive side, Lexus is doing more work with “warm-lead management,” Bolain said. That involves the delicate courting of a hand-raiser culled from the Lexus Web site, with mailings and other promotional material. There is a fine line between being a tickler and a stalker, Bolain said. The “hybrid-living suite” at the Fairmont in San Francisco: Touches of green and a loaner Lexus creates stronger ties between the owner and Lexus. And the results of grass-roots marketing can be tracked easily. A few months after an event, Lexus can cross-check attendance lists with retail delivery orders for new vehicles, which gives a precise cost per new vehicle sold, Bolain said. And there is a not-so-subtle punishment for an owner who sells his Lexus and loses his free parking in the Lexus Lot at an Atlanta Braves baseball game. Trudging from the back 40 and seeing his gleaming BMW parked next to SUVs full of door-dinging kids, the defector just might reconsider. “Luxury is no longer about the things you have,” Bolain said. “It’s about time and conveniences. All of this becomes more important as the market contracts.” c Dealers get involved Lexus also is helping dealers create evening events at showrooms. Typically, a dealer will host a local celebrity chef for a food-and-wine pairing at the dealership. “It is not threatening,” Bolain said. “There is no sell job. It’s just an event where there happen to be Lexuses present.” Grass-roots marketing is fiercely expensive on a per-person basis compared with the shotgun blast of a 30-second commercial during “Grey’s Anatomy.” But Bolain believes grass-roots marketing GET A COMPLETE MARKETING PROGRAM! Guerrilla TV Marketing Radio Print Hispanic Direct Mail Web Design GM hybrids get off to a slow start in first quarter Jamie LaReau jlareau@crain.com Internet Website Optimization In-Store CALL OR E-MAIL THE AGENCY THAT WILL WORK FOR YOU 24/7 (SERIOUSLY) 1-888-878-ZADV zauto@zadv.com or visit www.zadv.com DETROIT — Sales of new General Motors hybrids, including its touted full-sized SUVs, are taking off at a crawl. GM sold 843 hybrids in the first quarter — 655 of them the Two Mode hybrid versions of its full-sized Chevrolet Tahoe and GMC Yukon SUVs. The rest are mild hybrids: the Saturn Aura Green Line, Saturn Vue Green Line and Chevrolet Malibu Hybrid. Sales are slow because the Malibu Hybrid and the Two Mode SUVs are just entering the market, says a GM spokesman. “We talked about a model-year volume of 8,000 to 12,000 for Chevrolet’s Tahoe hybrid sold just 335 units in the first quarter. The base price is $50,490, including shipping. the Tahoe and Yukon, and that hasn’t changed,” says GM spokesman Brian Corbett. “Generally hybrid vehicle sales tend to be a little slower initially compared to regular vehicles. We’re expected to increase sales as awareness increases.” GM has been advertising the Tahoe and Yukon Two Modes since the Super Bowl in February, says Don Butler, executive director of Chevrolet truck advertising. Pitching mpg GM is also advertising the Tahoe online and in print publications such as Runner’s World magazine and The New Yorker. GMC has targeted highprofile events such as the Academy Awards. A 30-second spot that will run this month will emphasize that the Yukon hybrid gets 50 percent better city mileage than the nonhybrid version, says Steve Rosenblum, GMC marketing director. The two-wheel-drive Yukon hybrid is rated at 21 mpg city/22 mpg highway, compared with 14 mpg city/20 mpg highway for the nonhybrid model. The nonhybrid has a 5.3-liter engine, while the hybrid has a specially tuned 6.0-liter V-8 and other features that enhance fuel economy. see GM, Page 43 http://www.zadv.com http://www.zadv.com

Table of Contents Feed for the Digital Edition of Automotive News - April 14, 2008

Dealership jobs hit 8-year low GM is the wild card in axle war Service contracts: Hard-sell tactics plague dealers, customers TV auto ads shift to online, mobile venues At seminar, marketing execs to discuss new ways to reach customers Better get to know the Nano — it's set to change the world Veteran Detroit 3 dealer: 'The future is quite bleak' Poll: Dealers scrounge for cuts Locals closer to GM strike Scion xB price rises $100 Valeo CEO: No breakup Tata Nano changes low-cost development Hyundai tailors TV, Web ads for Hispanics Study: Ads focused on vehicle qualities won on Oscar night Post-Celine, Chrysler ad guru seeks right note Chrysler's quest for quality lured Nissan exec Betts Search starts for in-vehicle alcohol detectors After S. Calif. success, Honda may fund ad groups Computer images gain ground in TV ads Web TV offers automakers new ad, sales options BMW: X6 will bring brand new buyers Diana T. Kurylko Chrysler fields 'dream' ads Nissan seeks dealerships for trucks Honda will export Alabama-built Pilots to Russia Toyota, Subaru work on 'affordable' sports car Cadillac's ad agency savors the sweet life Some stores may not sell Chrysler hybrids GM hybrids get off to a slow start in first quarter Lexus adds a personal touch to pamper owners, prospects What they're buying — and what they're not The age of fuel innovation is here Approaches to r&d vary Nano brings credibility to Indian engineering Honda must revisit online dealer sales of service pacts Chrysler got it right Mandates, markets and buyer demand For Detroit, some things never change Buick: As Chicago goes, so goes the nation Auto industry has lost a good man Accentuate the positive Ex-Porsche CEO: Cayenne spiced up sales Green programs shape battle for engineering grads Tata rewards suppliers with ties to India Bill aims to set minimum sound levels for vehicles Industry lobbyists step up emissions fight Seeking wider market, Nissan equips sports car for snow New chief of SAE has D.C. skills China and GM's answer to Nano — sort of $2,500 car is Ratan Tata's personal quest NADA offers training in risky credit Donna Harris Deal's goal: Widen appeal of dent-repair coverage Title committee created Vehicle loan delinquencies rise from 2007 Suppliers to the 2009 Tata Nano Odd China combo: Fuel sippers, SUVs Pontiac Vibe: A sporty hauler with Toyota touches Dealers J.D. Power III named tracking company partner Toyota will buy back rusted Tacomas 100,000 Flex sales a year? Farley: 'Absolutely' Ford wants word-of-mouth campaign Small suppliers feel the pain of axle strike Plastech tries to sell 2 units TRW plant will build Ford gears Toyota plans 2nd India plant Dodge launch goes digital Toyota, GM recall 660,000 vehicles for window flaws Lear announces white-collar layoffs March output drops 23.6% New Ford ads tout quality improvements Tata dealers must be handy with a wrench Can the Greens slow down the autobahn? Racy scandal for race exec Echoes from the grave: Olds still has cachet The Final Say

Automotive News - April 14, 2008

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